KeyCorp (KEY) Stock Valuation — PE Analysis
Banks - Regional · NYSE
Current Price
$19.83
PE Ratio (TTM)
11.6x
Intrinsic Value
$25.85
+23.3% margin of safety
COMPETITIVE MOAT
↑Established Regional Branch Network
KeyCorp's extensive physical branch network across its core markets provides a tangible advantage. This allows for strong local customer relationships and accessibility, particularly for less digitally-inclined demographics.
↑Diversified Revenue Streams
The bank generates revenue from a mix of net interest income, fees from various banking services, and investment management. This diversification helps to mitigate risks associated with any single revenue source.
↑Long-Term Client Relationships
KeyCorp benefits from deep-seated relationships with both retail and commercial clients. These established connections create stickiness and reduce the likelihood of clients switching to competitors.
INVESTMENT RISKS
↓Interest Rate Sensitivity
KeyCorp's profitability is significantly influenced by interest rate movements. While rising rates can boost net interest income, they also increase funding costs and can impact loan demand.
↓Credit Quality Deterioration
Economic downturns or industry-specific challenges could lead to an increase in loan defaults. This would negatively impact KeyCorp's earnings and capital reserves.
↓Regulatory Environment
The banking industry is subject to stringent and evolving regulations. Changes in capital requirements, compliance costs, or new rules could impact KeyCorp's operations and profitability.
Base case
KEY base case PE valuation
At a current price of $19.83, the base case PE valuation puts KEY fair value near $25.85 per share. That figure assumes 6.8% yearly earnings growth, a target PE multiple of 10.44x, and a 10% discount rate.
Intrinsic Value
$25.85
Margin of safety
+23.3%
Expected annual return
+5.4%
Base case assumptions: 6.8% annual earnings growth, 10.44x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the KEY PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for KeyCorp respond.
Open PE Calculator for KEYCompany Overview
KeyCorp functions as the parent entity for KeyBank National Association, delivering a wide array of banking services to retail and business clients across the United States. Its operations are distinctly segmented into a Consumer Bank and a Commercial Bank. Targeting both individual consumers and small to medium-sized businesses, the corporation extends a comprehensive suite of services. These offerings include various deposit accounts, investment solutions, personal financial planning and wellness programs, student loan refinancing, mortgage and home equity products, general lending, credit card services, treasury management, business advisory, wealth and asset management, and trust-related services. Moreover, the company furnishes middle-market clients with a robust selection of sophisticated banking and capital market products. These encompass syndicated lending, debt and equity capital market offerings, commercial payment solutions, equipment financing, commercial real estate mortgage banking, derivatives, foreign exchange services, financial advisory, and public finance. Its commercial mortgage portfolio encompasses loans across diverse sectors, including consumer, energy, healthcare, industrial, public sector, real estate, and technology. Additionally, KeyCorp engages in community development financing, securities underwriting, brokerage, and investment banking services. As of December 31, 2021, its operational reach extended across 15 states, supported by an extensive network of approximately 999 physical branches and 1,317 automated teller machines (ATMs). Beyond its physical footprint, the company offers online and mobile banking capabilities, alongside a dedicated telephone banking call center and other offices. Established in 1849, KeyCorp maintains its corporate headquarters in Cleveland, Ohio.
Financial Metrics — KEY PE Stock Valuation Data
PE Ratio (TTM)
11.6x
PEG Ratio
0.00
Earnings Yield
9.56%
ROE (TTM)
10.1%
Revenue/Share (TTM)
$9.78
Dividend Yield
4.10%
Debt/Equity
0.74x
Frequently Asked Questions
What is the PE ratio of KEY?
The trailing twelve-month PE ratio of KEY reflects how much investors pay per dollar of KeyCorp's earnings. This metric is most useful when compared to Banks - Regional peers and the company's own historical range.
Is KEY overvalued based on PE ratio?
KEY's PE of 11.6x combined with a PEG ratio of 0.00 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Banks - Regional, a DCF analysis may be more appropriate.
How do I value KEY stock using PE ratio?
To value KeyCorp using PE: (1) Compare the current PE (11.6x) against the Banks - Regional median to assess relative pricing, (2) check the PEG ratio (0.00) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of KEY?
KEY's PEG ratio is 0.00, calculated by dividing the PE ratio (11.6x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for KEY stock valuation?
PE ratio gives a quick relative read — how KEY is priced versus Banks - Regional peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See KEY DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value KEY with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.